Car Insurance for Luxury Vehicles

By Desiree Baughman
Desiree maintains insurance licensure in 46 states, and by combining years of experience as a writer and insurance professional, she delivers information consumers can easily relate to and understand. A graduate of Sweet Briar College with a diverse writing portfolio, she regularly serves as an expert source and commentator for respected outlets like CBS Money, Bankrate, and

Car Insurance for Luxury VehiclesAmong all of the classes of vehicles, luxury cars are often the most insured, and for good reason. Not only are these cars beautiful, their owners tend to be more affluent and keep them in good condition. These same people may also be more able to afford adequate insurance for their BMW 5 series or Acura TL.

Even so, car owners of every stripe have reason to be savvy about their insurance coverage and costs. Given that luxury vehicles cost more than your standard compact car, you might assume that the insurance will also cost more. After all, repairing or replacing that expensive luxury car is going to set the insurance company back a whole lot more than replacing an aged Dodge Caravan. But luxury car insurance isn’t always necessarily more expensive.

First off, here’s some good news:

A Strong Overall Safety Record Means Reduced Premiums

According to a report entitled An Analysis of Traffic Deaths by Vehicle Type and Model, luxury vehicles and minivans have the safest driving records. This is due to a number of contributing factors:

  • Most luxury vehicle owners are over 25, meaning they are likely more mature with lots of driving experience.
  • Luxury vehicles, while they can achieve high speeds, aren’t specifically designed to do so and don’t draw individuals who are perhaps “speed demons”.
  • Luxury vehicles are equipped with state of the art safety equipment.

Insurance companies weigh these factors heavily, which is why many luxury vehicle owners are shocked to find that their insurance isn’t nearly as expensive as they thought it would be. It’s also important for these drivers to note that there’s no specific “luxury car” insurance, and that they’re offered the same standard policy options as a Toyota Camry owner – one including liability, collision, comprehensive, gap insurance, and other standard coverage options.

Despite the fact that luxury car owners already see some “luxurious” insurance benefits, they still have some wiggle room when it comes to negotiating their insurance premiums. Here are a few things you can do:

Keep Young Drivers Out Of Your Car

For the safety of your vehicle and your wallet, it’s wise to keep your teen from behind the wheel of your Mercedes. Adding a young and inexperienced driver to your policy cause rates to increase considerably, and young drivers may feel especially “ambitious” when behind the wheels of such vehicles. That can often equate to more accidents and violations, which may mean an increase in rates.

Ask About Low Mileage Driving

If you plan on only using your vehicle occasionally, ask about low mileage driving or “pay as you drive” (PAYD) insurance. Keeping mileage to only a few miles a week reduces the risk of damaging your vehicle, and should therefore reduce premiums.

Join a Luxury Car Club

Car insurance companies equate your being part of a luxury car club with your being someone who takes pride in his or her vehicle, and therefore will drive more carefully than the average car owner.

While there’s no specific luxury car insurance, liability, collision and comprehensive coverage are a must-have for car owners who want to keep their cars in meticulous shape. If you have a bit more room in your car insurance budget, it’s also wise for owners of financed luxury cars to consider gap insurance. This insurance could save you from a terrible financial setback should your car be severely damaged or be written off in the future.